Azerbaijani President Highlights Revised Hydrocarbon Estimates and Renewable Energy Push

In an interview with Dmitry Kiselev, General Director of Russia Today, Azerbaijani President Ilham Aliyev outlined a significant upward revision in the country's hydrocarbon reserves and reaffirmed Azerbaijan's commitment to advancing renewable energy projects. The conversation, aired on the "Russia-1" TV channel, spotlighted Azerbaijan's dual strategy of leveraging its hydrocarbon wealth while building a robust renewable energy sector.

Aliyev disclosed that Azerbaijan’s proven natural gas reserves, previously estimated at 2.6 trillion cubic meters a decade ago, are likely due for a substantial update. "The Azeri-Chirag-Gunashli (ACG) block, which we have been developing for 30 years, has seen its resource estimate grow from an initial 500 million tons of oil to 1.5 billion tons. A similar reassessment is expected for our gas and gas-condensate fields," he said.

These developments underscore Azerbaijan’s long-term energy security, with Aliyev emphasizing that the country, exporting 25 billion cubic meters of gas annually, has "no need for additional energy sources."

Hydrocarbon Wealth Anchored in ACG and Shah Deniz

The ACG fields, operational since 1997, have yielded 600.1 million tons of oil (4.44 billion barrels) as of December 2024. Meanwhile, the Caspian Sea's Shah Deniz field remains a cornerstone of Azerbaijan's gas production, boasting confirmed reserves of 1.2 trillion cubic meters, of which 20% has been extracted since operations began in 2006.

These assets position Azerbaijan as a critical energy supplier in the region, while also providing the fiscal backbone for diversifying into renewable energy.

Expanding the Renewable Frontier

Highlighting Azerbaijan's pivot towards green energy, Aliyev noted substantial progress in renewable energy projects. "In Karabakh and East Zangezur, we’ve completed small hydroelectric projects with a capacity of 300 megawatts over the past three years, which will expand to 500 MW within two years," he said. Additionally, solar and wind energy projects are gaining traction, fueled by foreign investment.

The Caspian Sea alone offers a vast untapped potential, with the World Bank estimating wind energy capacity at 157,000 megawatts. Contracts signed through 2030 could yield up to 6,000 megawatts, making Azerbaijan a potential regional leader in green energy exports.

Nuclear Power: A Future Prospect

Aliyev also floated the possibility of Azerbaijan entering the nuclear power sector, describing it as an opportunity to diversify the economy. "We’ve never had this before, but it’s a global trend we don’t want to miss. I’ve directed relevant agencies to explore the feasibility of mini-reactors for research and experimental purposes," he said. However, he acknowledged the high costs involved and emphasized Azerbaijan’s preference for foreign investment in energy projects.

Bridging Europe’s Energy Gap

According to Aliyev, Azerbaijan is ready to play a key role in Europe's energy transition. A feasibility study for a trans-Black Sea energy cable to export renewable energy is expected to be finalized soon. "The initial capacity is 4,000 megawatts, but given Europe’s growing energy deficit, additional sources of clean energy will be essential," Aliyev noted.

This strategic alignment with Europe’s energy needs positions Azerbaijan as a critical player in the global shift toward sustainable energy solutions.

Investment-Friendly Energy Pricing

Domestically, Azerbaijan’s favorable electricity pricing structure bolsters the case for energy sector investments. "Our pricing makes energy sales to consumers and companies commercially viable," Aliyev remarked, underscoring the potential for private and public collaboration in scaling Azerbaijan’s energy ambitions.

By blending its hydrocarbon wealth with an aggressive push for renewables, Azerbaijan is crafting a narrative of resilience and innovation, one that could redefine its role on the global energy stage.